Andhra deputy CM suggests changing Rushikonda palatial complex into MICE destination
Pawan Kalyan, who along with his cabinet colleagues Nadendla Manohar and Kandula Durgesh, inspected the controversial palatial complex, said the government will consider the proposal to repurpose the buildings and make them revenue-generating assets
Jana Sena Party president and Andhra Pradesh deputy chief minister Pawan Kalyan on Friday suggested transforming the Rushikonda palatial complex in Visakhapatnam, built during the previous YSR Congress party regime at an estimated cost of nearly ₹500 crore, into a MICE (meetings, incentives, conferences and exhibitions) destination.
Pawan Kalyan, who along with his cabinet colleagues Nadendla Manohar and Kandula Durgesh, inspected the controversial palatial complex, said the government will consider the proposal to repurpose the buildings and make them revenue-generating assets.
“Many experts have suggested transforming the complex into a MICE (Meetings, Incentives, Conferences and Exhibitions) destination or a hub for destination weddings. We will soon submit our recommendations to chief minister N Chandrababu Naidu. A decision will be finalised before the winter session of the assembly,” the deputy chief minister said.
The magnificent palatial bungalows, built atop the picturesque beach-front of Rushikonda Hills in Visakhapatnam by the previous YS Jagan Mohan Reddy government, was originally projected to be developed as a luxurious tourist resort.
But at the time of inauguration of the palace on February 29, then tourism minister R K Roja said it could be used for accommodating the residence-cum-camp office of Jagan Mohan Reddy.
The ultramodern complex, spread over 9.88 acres and comprising seven blocks had a total built-up area of 19,968 square meters, and was inaccessible to the common people till the YSRCP lost power in June 2024.
During a visit by chief minister N Chandrababu Naidu to the palace in November 2024, it was revealed then that the building has flooring with imported granite, 200 chandeliers, each costing up to ₹15 lakh, cosy interiors designed at a cost of ₹33 crore, imported furniture, spa, Jacuzzis and spacious washrooms.
It has landscaping with exotic imported plants and grass, an advanced sound system, a very large home theatre, and multi-hued illumination are among some of the features of this mansion. Though Naidu had then promised to find ways to make use of it for public purposes, no decision has been made till now.
During his visit to the Rushikonda palace on Friday, Pawan Kalyan found that the palace was being badly maintained. The ceiling planks had collapsed in some places and there was evidence of water leakage in the building as well.
The deputy chief minister called minister Nadendla Manohar to explain the situation and he too appeared to be taken aback, as it seemed that big chunks of plaster were falling apart.
“The buildings are poorly maintained, environmentally damaging, and economically unviable. Even the walls are peeling off and water is leaking from several blocks,” Pawan Kalyan said.
He instructed that urgent repairs be taken up initially to make the buildings safe and operational. “Only four out of seven planned blocks were completed, with costs spiralling from the initial estimate of ₹164 crore to ₹453 crore, nearly four times the budget,” he said.
The newly-built palatial complex was built after demolishing an earlier tourism resort being run by the AP Tourism Development Corporation (APTDC). The original resort had 58 rooms, a conference hall and a bar-cum-restaurant in a total area of 4,439 square meters.
“The original tourism resort in Rushikonda used to generate around ₹7 crore annual revenue for the tourism department. Now, the government is spending a heavy amount for maintenance, including ₹1.5 crore annually just on electricity bills,” the deputy CM said.
He said the previous government had spent ₹39 crore solely on interior decoration. “There were environmental violations resulting in a legal battle in the court. The National Green Tribunal (NGT) is already examining the case, while the Supreme Court earlier directed that construction be restricted to sites where old Haritha hotels were demolished,” he said.
Pawan Kalyan said the high court had also ordered an assessment of the environmental impact caused by the construction. “A team of experts has already confirmed serious violations. We are awaiting the final judicial verdict on the matter,” he added.
The deputy chief minster assured that the government would take a strategic and revenue-focused decision on the future use of the complex, balancing financial recovery with environmental restoration.
Drawing a comparison to Dubai’s MICE model, he said Vizag too, can be developed as a MICE hub. “The goal is to ensure that public wealth is not wasted any further and that these assets can be turned into a source of income for the state,” he added.
